Wal-Mart (WMT) Offering Possible 16.82% Return Over the Next 7 Calendar Days

Wal-Mart's most recent trend suggests a bullish bias. One trading opportunity on Wal-Mart is a Bull Put Spread using a strike $94.00 short put and a strike $89.00 long put offers a potential 16.82% return on risk over the next 7 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $94.00 by expiration. The full premium credit of $0.72 would be kept by the premium seller. The risk of $4.28 would be incurred if the stock dropped below the $89.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Wal-Mart is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Wal-Mart is bullish.

The RSI indicator is at 61.97 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

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Buy Microsoft (MSFT) Stock on the Dip Amid Apple (AAPL) Uncertainty?
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Microsoft's growth outlook appears strong as it expands across cloud computing, IoT, and gaming.

Why Disney Is Spending $25 Million per Year on Staff Education
Wed, 09 Jan 2019 15:25:11 +0000
As the Wall Street Journal reported recently, the Walt Disney Company (DIS) is among those large American companies that have launched back-to-school programs for their employees. Companies such as Disney have discovered that investing in employees’ college education can help them hold on to valuable talent in a tight labor market. Disney launched its back-to-school program in August last year, and it expects the program to cost it $25 million annually.

Sears was the Amazon of its day, now Jeff Bezos' behemoth reigns
Wed, 09 Jan 2019 14:52:00 +0000
Sears Holdings may need to shutter its business, ending the retailer's 126-year run, unless a bankruptcy court approves a buyout from Chairman Eddie Lampert. Sears has often been called the Amazon of its day. As bankrupt Sears Holdings inches toward liquidation, Amazon AMZN on Monday became the most valuable public company in the world , surpassing Microsoft MSFT .

Walmart Has Looked Strong after Buffett’s Exit
Wed, 09 Jan 2019 14:00:26 +0000
Exiting Like Warren Buffett: Is It a Profitable Strategy?

(Continued from Prior Part)

## Walmart

So far in this series, we have discussed General Electric (GE) and IBM. Berkshire Hathaway (BRK-B) exited both of these stocks in the last few years. Walmart (WMT) was another stock that Buffett exited in 2018. While General Electric and IBM have fallen from the levels when Buffett exited his stake, Walmart is actually higher. While Walmart’s returns lag Amazon (AMZN), Walmart isn’t a sinking ship.

Amazon has made life difficult for retailers. Since more consumers prefer online shopping, traditional brick and mortar stores have struggled. Several leading brick and mortar stores have closed in the last few years. They weren’t able to compete in a hyper-competitive market.

## Should Buffett have stayed on?

As more competitors’ stores shut down, companies like Walmart might gain. Walmart has also been ramping up its online presence in the US market (SPY). The company has also entered India by acquiring Flipkart. Amazon is investing significantly in India. Earlier this year, Buffett made a bet on India by acquiring a small stake in Paytm. The company has a mobile wallet and e-commerce business.

While Buffett exited General Electric and IBM at appropriate times, it might be a little early to write off Walmart. Although the stock markets have been in love with Amazon, Buffett has stayed away from the company.

Along with the exits that we have discussed in this series, Buffett has cautioned against cryptocurrencies. Next, we’ll discuss whether cryptocurrencies could prove Buffett wrong.

Continue to Next Part

Browse this series on Market Realist:

* Part 1 – Exiting Like Warren Buffett: Is It a Profitable Strategy?
* Part 2 – Buffett Exited General Electric: Should You?
* Part 3 – Buffett and GE: Is It the Right Number and Right Time?

No Reprieve Can Save Sears Stock From the Inevitable
Wed, 09 Jan 2019 13:37:21 +0000
Among iconic American companies, few stand out quite like Sears (OTCMKTS:SHLDQ). But over the last several years, the formerly ubiquitous retailer made headlines for all the wrong reasons. Based on its recent bankruptcy proceedings, Sears stock appeared headed for an ignominious end.

However, a last-minute reprieve may give the deeply embattled company some critical breathing room. Management agreed to review a revised proposal from Sears chairman and former CEO Edward Lampert. Lampert's bid was among several during a bankruptcy auction held on Monday.

The news represented a rare glimmer of optimism in an otherwise bleak environment. Along with the near-complete destruction of SHLDQ stock, the bankruptcy eliminated 68,000 jobs. Lampert's revised bid provides a tight window to save up to 50,000 jobs. It's a long shot, but for impacted workers, they have nothing else.

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The first step? To buy some extra time, Lampert must post a $120 million deposit by 4 p.m. EST today. Roughly $17 million of the total deposit is nonrefundable. This portion will cover the costs in delaying the bankruptcy auction should Lampert's revised bid fail.

* 10 Stocks You Can Set and Forget (Even In This Market)

Naturally, Wall Street responded positively to Sears stock, which surged 30% on Tuesday. It's easily one of the biggest moves in the company's history. However, it's more than likely a case of too little, too late.

For one thing, Lampert is no guardian angel. In his original bid, the former head executive wanted his hedge fund, ESL Investments, to buy SHLDQ out of bankruptcy. But in the $4.4 billion proposal, ESL sought to convert $1.3 billion of Sears debt it holds for an equity stake in the newly restructured organization.

Attorney Abid Qureshi, who represents a committee of Sears stock creditors, asserted that dealings between Lampert, ESL and SHLDQ unfairly benefit certain insiders over others.

### Lampert Is Bad News for Sears Stock

I completely agree with Qureshi's concerns. While this whole creditor issue smacks of "rich people's problems," I'm looking at the principle of the matter. Lampert clearly has his personal motives for buying out SHLDQ stock on the cheap.

What drives me crazy about this controversy is that he had a great opportunity to turn the sinking ship around. You can point out Amazon (NASDAQ:AMZN) and its disruptive nature all you want. But during the time Lampert took the reins, Best Buy (NYSE:BBY) began earnestly diving into its rejuvenation strategy.

Through physical restructuring and key investments into lucrative consumer segments, BBY dug its way out of the doldrums. Walmart (NYSE:WMT) achieved similar results through developing its online channels and utilizing its brick-and-mortar footprint to its advantage.

SHLDQ could have easily gone the latter route. Largely through legacy and luck, several Sears stores are located in prime business districts. A few smart decisions could not only have saved Sears stock but tens of thousands of jobs.

Obviously, that's not how things turned out. The reason again points to Lampert. The controversial figure is probably the worst leader in American corporate history. According to Business Insider, Lampert cultivated a culture of fear and intimidation. Step outside the lines, and you will get "shredded."

Typically, most employees have a few salty words for upper management, so I usually take such characterizations with some skepticism. But in Lampert's case, I believe every poor word uttered against him. The man himself has publicly destroyed his own credibility.

A year-and-a-half ago, I criticized the then-CEO for lashing out at the media. Lampert felt that news agencies published "irresponsible" reports about Sears. Apparently, he forgot that he could singlehandedly change the narrative.

He refused, and the public has every right to hold him accountable.

### Revamped End Goal Not Clear

But even if we all slipped through a wormhole and into an alternative universe where Lampert emerged victoriously, I'm not sure how this would benefit Sears stock.

Yes, a good chunk of workers will have their jobs back. Surely, this would improve morale, among other sentiments. But if the underlying issues aren't resolved, we're going to see another bankruptcy pop up.

And what is the core nagging problem? Management refuses to adapt to changing consumer behaviors. Inexplicably, they rested on their laurels while its competitors worked vigorously to address the e-commerce threat.

If Lampert would spend half the effort he expends on yelling at his subordinates toward revitalizing Sears, SHLDQ stock would be in a much different place. But I believe he relishes being a keyboard commando. That's good news for his ego, but a terrible indictment on a once proud American icon.

As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities.

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